LLC Dealing with exclusively rental income

[mohan]

Hi 

I am preparing a LLC tax return (1065). The LLC has only rental income. I put rental income on line 1a Gross receipts and sales.

Profit goes to K-1 line 1 Ordinary Business Income (Loss).

Is this correct?  Or that would go on K-1 line 2  Net rental Real estate income? 

 This is my first time LLC with rental income.

[Just-Lisa-Now-]

I dont prepare many partnerships and none of them have rentals, but wouldnt you use the Form 8825 to record all the rental income and expenses?

[sjrcpa]

Yes you would

[mohan]

8825 in addition to 1065?  so 1065 line 1a would not be any sales?  

[Just-Lisa-Now-]

Form 8825 is a form within the 1065.   You enter everything on the 8825.

Form 8825 is to the 1065, as Schedule E is to the 1040.

[mohan]

Can you please clarify a little more how to prepare this tax return. Would appreciate!

[mohan]

Thank you so much.

i got you

[mohan]

Hi Lisa, thank you so much to you. 8825 data is not flowing to 1065. But data flowing to the K-1. I mean 1065 tax return is blank?

is that  the way works ?

[abctax55]

@mohan... that is exactly how it works. That is because rental income or loss is separately reported on the Form 1040.  And rental losses may not be deductible.

[Skylane]

Did you activate the K1s and include the allocations %s of the income?

[mohan]

K-1 Is looks good. exactly showing the profit. But when i prepared 8825, 8825 data is not not flowing to 1065 Partnership form. My question is 8825 data will be flowing to 1065? or only K-1.

My 1065 is showing all are are "0".

Is this correct?

[abctax55]

I previously said that, yes... that is how it works. 

[Inform me]

I too, preparing an LLC tax return but not showing the product on my select tax return type. Where can I access 1065 on Proseries?

[Accountant-Man]

1065 page 1 is blank. 1065 page 4 line 2 is reported.

[Accountant-Man]

Pro Series Pro, not Basic. Then Update, Select and download 1065.

[Inform me]

Thank you so much! 

[Mike R]

Report rental income on Form 8825. It show flow to Rental Income on the K-1

[abctax55]

Thanks for confirming what was pointed out yesterday.

[qbteachmt]

@Inform me 

You had previously asked your question, here:

https://proconnect.intuit.com/community/proseries-discussions/discussion/filing-1065/01/64125#M35790

No need to put it again inside of someone else's topic. Make sure to follow up on your own answers. Peer users are volunteering to help you, so let's make it easy for them. Thanks.